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UltimatePlayer3301 OP t1_j6o8vgi wrote

Reply to comment by kwazirr in Is it feasible to buy a house with 3 friends for my 4 years in college (or maybe longer)? by UltimatePlayer3301

We were planning doing everything 25% of if there were more people completely equally (including the payments). Getting things in writing was gonna be one of the things we would do if we were to go through with this.

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kwazirr t1_j6o9029 wrote

Awesome, nice work. Always protect yourself financially!

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Hoo2k8 t1_j6oduhk wrote

But this isn’t even close to protecting himself financially.

The four of them agreeing to pay 25% is meaningless to the mortgage company. If a roommate doesn’t pay, the rest of them are still responsible for paying the full mortgage. If mortgage payments are late or the house is foreclosed, it’s hurts all of them, even the ones that paid their share on time

And contracts don’t exist in limbo. OP needs to understand the laws in their state. Can any owner legally force the sell of the house? If so, it likely doesn’t matter what they agreed to. Likewise, if all owners have to agree to sell, it once again likely won’t matter what they agree to.

This stuff is way too complicated for a subreddit and OP needs to have a lawyer involved.

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kwazirr t1_j6ofp58 wrote

I'm speaking in terms of a legal document (with a lawyer) and yes, that would protect OP financially. As for the details of that, yes a lawyer would need to be involved. I'm not talking about a handshake and a high five.

Not sure why you're responding as if I gave them bad advice, I'm right. I appreciate your additional input though.

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UltimatePlayer3301 OP t1_j6ogi91 wrote

I'm not exactly sure how an LLC works, but I think it is slightly related to this situation, could I use an LLC to evenly buy the house 25% each and with how I think they work, could say if someone wants out, another person can buy their 25% in the LLC? Correct me if I'm wrong, I am not even close to sure.

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kwazirr t1_j6oio2z wrote

Sounds like a great, specific question for a post, guarantee you'll get some great advice from those smarter than I!

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